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India’s Coal Consumption Continues to Expand

October 7, 2010

The World Economic Outlook released by the International Monetary Fund this week confirms the likely continued high growth trajectory of Asia.  Along with China, India is likely to be an important part of this economic growth.

The International Energy Agency has consistently demonstrated the continued status of India being a key consumer of fossil fuels both now, and in the future.

India’s electrification rate is only 50% in rural areas – 400 million people have no access to electricity. 

Most electricity generation in India is from thermal coal:

Source: Energy Information Administration

India continues to add significantly to installed electricity generation capacity:

Source: Energy Information Administration

Historical coal consumption in India demonstrates the trend:

Source: Energy Information Administration

 This upward trend is projected to continue well into the future, according to EIA projections:

It looks like a tectonic shift of some kind will be needed to avoid India’s fundamental requirement for energy being based on high-carbon emitting thermal coal electricity generation in the future.

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